Willis currently has $120,000 invested in a portfolio of four stocks with a beat ratio equal to 0.8. Willis plans to sell one of the stocks in his portfolio for $48,000, which will increase the portfolio's beta to 1.0. What is the beta coefficient of the stock Willis plans to sell?

Answer rating: 100% (QA)

To solve this problem we can use the formula for the weighted average beta of a portfolio Portfolio ... View the full answer